Analyzing RD activities of foreign enterprises in emerging economies. Lessons from Turkey

Emerging economies have played an important role in the internationalization of R&D activities at least since the 1990s. Turkey, an emerging economy and at same time an accession country to the European Union which signed a Customs Union Agreement with the EU already in 1995, is no exception. In-depth face-to-face semi-structured interviews were conducted with R&D directors of 26 multinational companies operating in Turkey –with headquarters located in France, Germany, Italy, Japan, Switzerlandand USA- in the informatics, automotive, electronics and pharmaceutical industries. Data and qualitative information obtained through these interviews are then used to analyze those factors theory points to as being major determinants of foreign R&D in emerging economies. The emphasis is on the (i) motivations of foreign enterprises for launching new R&D activities or extending existing ones (ii) restrictions of different kind they encounter in doing so (iii) their reactions with respect to FDI promotion policies and public R&D support incentives implemented by Turkish policy makers, and (iv) advantages/disadvantages of Turkish economy as an R&D location in comparison with other emerging economies. A number of policy recommendations for attracting more foreign R&D in Turkey and integrating them with the Turkish national innovation system are advanced.
TEKPOL working paper series, STPS-WP-11/04


The impact of R&D and knowledge diffusion on the productivity of manufacturing firms in Turkey
Ulku, Hulya; Pamukcu, Mehmet Teoman (2015-08-01)
As the experiences of newly industrialized economies have shown, R&D and knowledge diffusion can play a crucial role in spurring the innovation capacity and productivity of emerging economies. Using firm level manufacturing data from 2003 to 2007, this paper investigates whether R&D intensity and various channels of knowledge diffusion affect productivity in Turkey-one of the fastest-growing emerging economies of the past decade. We find that an increase in the foreign ownership share in firms and technolog...
Analysis of foreign ownership, RD and spillovers in developing countries: Evidence from Turkey
Pamukcu, Mehmet Teoman (null; 2011-09-02)
In the past few decades globalization enabled a new playing field for emerging economies. With the falling costs of information and communication technologies, multinational companies (MNCs) from the developed world first took advantage of the low labor costs in the developing economies. However, recognizing the lower cost of skilled manpower in the same countries, MNCs started to take advantage of scientists and engineers as well. Therefore, Foreign Direct Investment (FDI) has been recognized as a major me...
Dollarization and bank performance
Işık, Sena; Şendeniz Yüncü, İlkay; Department of Business Administration (2019)
Dollarization is an important topic in the developing economies since 1970s. It has significant effects on the real sector, public debt management, monetary policy and financial system. In addition, denomination of a big portion of the financial assets and liabilities in foreign currencies creates mismatch between the currencies of assets and liabilities held in foreign currencies and those in domestic currency. The currency mismatch causes financial fragilities and subsequent serious macroeconomic risks. T...
Assessing the Drivers of R&D Activities of Firms in Developing Countries: Evidence From Turkey
Kalayci, Elif; Pamukcu, Mehmet Teoman (2014-12-01)
Research and development (R&D) activities of firms in developing countries (DCs) have been gaining in importance for nationwide economic growth and development, while globalization of the world economy offers a number of opportunities for fostering knowledge-creating activities. Therefore, a better understanding of factors influencing R&D activities of firms in DCs with a view to conceive and implement appropriate policies is firmly on the agenda. In this article, a rich firm-level data set and a new estima...
Analysis of economic data using robust methods
Coşar, Evren Erdogan; Akkaya, Ayşen; Department of Statistics (2002)
Export plays an important role in the economic development of a country. Because of its importance in implementing trade policies, there is an extensive literature on the estimation of export functions. Most of the studies on estimating export functions utilized conventional econometric techniques with the normality assumption of innovations. However, it has been recently recognized that non-normal distributions for innovations are more common in practice. IllThe main aim of this study is to estimate the ex...
Citation Formats
E. Erdil and M. T. Pamukcu, “Analyzing RD activities of foreign enterprises in emerging economies. Lessons from Turkey,” TEKPOL working paper series, STPS-WP-11/04, pp. 185–232, 2011, Accessed: 00, 2021. [Online]. Available: